The tool identifies the client’s committed and discretionary expenditure to show the potential shortfalls and long-term effect of a drop in earnings because of illness, bereavement or redundancy.

The network says the calculator will help advisers meet the FCA’s Consumer Duty requirements on preventing foreseeable harm.

It is also designed to highlight situations where products such as income protection might be beneficial.

The Right Mortgage & Protection Network regulatory trainer Keith White says: “The Shortfall Needs Analysis Calculator gives advisers a clearer and faster way to understand a client’s potential financial shortfall and what element of protection they may require based on a detailed analysis of both committed and discretionary expenditure.

“It removes much of the complexity and time pressure involved in assessing clients’ income levels and how this might translate into a potential shortfall and how this might require a specific protection solution such as income protection.

“This calculator will help advisers move more efficiently toward identifying protection needs and also gives a useful visual aid when presenting these potential options to clients.

“It is a positive step forward in filling the growing protection gap and ensuring clients are adequately covered should they lose their job, get sick or their income drops for any reason.”